According to a recent report, the size of the global AML market is predicted to soar from $2.8BN (€2.85BN) in 2022 to a staggering $5.8BN (€5.9BN) in five years.
The five-year forecast for the industry, published today by ResearchAndMarkets.com, indicates that the figures will experience a Compound Annual Growth Rate (CAGR) of 15.9 percent.
"Monetary penalties, regulatory sanctions and reputational loss due to non-compliance with regulations, growing focus towards digital payments and necessity to create a 360-degree view of data in the financial landscape" are some of the factors influencing this explosive growth.
The report does, however, issue a warning that the market's expansion is likely to be hampered by a lack of highly knowledgeable AML professionals as well as a lack of awareness regarding governmental regulations and the use of AML solutions.
The industry with the highest projected CAGR over the next few years will be insurance, which includes life, health, travel, corporate, and auto insurance. The Life Insurance sector has become "vulnerable to money laundering and other illegal activities" as a result of the industry's "flflexible offering and massive flow of funds."
According to the report, government and financial organizations will be required to implement specific AML guidelines and recommendations in order to keep track of these funds, which will encourage the adoption of AML solutions.
Additionally, North America is anticipated to experience the largest increase in market size during the forecast period. The North American region is anticipated to hold the largest market share "due to the presence of major vendors of AML solutions and services in the North America region and continuous innovations such as the implementation of AI and ML in AML solutions."
By fLEXI tEAM